Estimate your 2026 No Tax on Tips deduction

Free tool

How much federal income tax might you save under the qualified tips deduction? Enter your tips and rough income. Everything stays in your browser.

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Tips you expect to report, the ones that should appear on your W-2, 1099, or Form 4137.

Is your job on the IRS tipped occupations list?
Filing status
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Rough total income, used only for the phase-out. If unsure, use a ballpark.

Illustrative only. Pick the federal rate you think your last dollars are taxed at; check your own return or ask a tax pro.

Your estimate

Estimated qualified tips deduction

$0

Illustrative federal income-tax savings at 22%

≈ $0

Qualified tips$0
Capped at $25,000$0
MAGI over $150,000$0
0 full $1,000 steps × $100− $0
Estimated deduction$0

Enter your annual tips above. Not sure of the total? That’s what TipMax is for.

  • You still owe FICA. Social Security and Medicare generally still apply to reported tips. This estimate doesn’t subtract them, because the deduction doesn’t waive them.
  • Federal only. Your state may still tax tips.
  • An estimate, not tax advice. It isn’t a refund figure. Confirm with IRS.gov or a tax professional before you file.
How this estimate works
  • Qualified tips = your tips minus anything you marked as not really tips.
  • The deduction is capped at $25,000 per return.
  • Phase-out, following Schedule 1-A Part II: take MAGI over $150,000 ($300,000 if married filing jointly), divide by $1,000, drop any fraction, and multiply by $100. Subtract that from the capped amount, never below $0.
  • Illustrative savings = deduction × the marginal rate you picked. Real savings depend on your whole return.
  • Married taxpayers must file jointly to claim. A valid SSN is required.
  • Available whether you take the standard deduction or itemize.
  • Applies to tax years 2025 through 2028.
  • Not covered here: the self-employed net-income and specified service business limits, and the multi-employer worksheet. For those, see the Schedule 1-A instructions.

Know your tips before tax time.

TipMax logs cash, card, and tip-outs per shift so your year-end totals aren’t a shoebox guess. Use those totals when you (or your tax pro) work Schedule 1-A. TipMax doesn’t file your return.

Get TipMax: track tips automatically

How No Tax on Tips works

Questions behind the numbers

Official sources

Last verified September 23, 2026 against the IRS tip page and Schedule 1-A Part II: $25,000 cap, $150,000 / $300,000 phase-out thresholds, $100 per full $1,000 reduction, tax years 2025–2028.

TipMax Answers explains public IRS guidance in plain English for tipped workers. It is not tax, legal, or accounting advice. Rules can change. Confirm figures on IRS.gov and with a qualified tax professional before you file. TipMax the app helps you track tips and true hourly pay; it does not file your taxes.